Sarbanes Oxley Act, An Overview Essay - 915 Words

As your financial Adviser I am legally obligated to act in your best interest, which means to advise and explain to you some important changes in the accounting field relating to Sarbanes Oxley Act, also called SOX. In July 2002, The US Congress enacted the Sarbanes Oxley Act, Also known as the Public Company Accounting Reform and Investor Protection Act (in the Senate) and Corporate and Auditing Accountability and Responsibility Act (in the House). Co-authored by U.S. Sen. Paul Sarbanes of Maryland and U.S. Rep. Michael Oxley of Ohio. (Slaughter, 2015). This legislation requires â€Å"help curb financial abuses at companies that issue their stock to the public. SOX requires that these public companies apply both accounting oversight and stringent internal controls. The desired results include more transparency, accountability, and truthfulness in reporting transactions†. (Wild, 2015, pg. 12). The Sarbanes-Oxley Act is considered the most important piece of security legislation since the formation of the Securities and Exchange Commission (SEC) in 1934. It requires the managers and auditors of companies, whose stock is traded on an exchange to document and certify the system of internal controls. The landmark Sarbanes-Oxley Act of 2002 was implemented in response to a series of high-profile financial scandals that happened in the early 2000s at companies such as Enron, WorldCom and Tyco that abused the rule-based accounting practices that resulted in lack ofShow MoreRelatedOverview of the Sarbanes-Oxley Act1068 Words   |  4 Pagesï » ¿Sarbanes-Oxley Act Introduction The Sarbanes-Oxley Act was signed into law on July 30, 2002, by President George W. Bush; it was a congressional regulatory response to the enormously damaging corporate scandals at WorldCom, the Arthur Anderson accounting group and most notoriously, Enron. Because of the damage done not only to the reputations of those corporations and to the American corporate community but also to the stockholders and people who lost life savings (people who lost 401-K investmentsRead MoreEssay on Overview of the Sarbanes-Oxley Act (SOX)1342 Words   |  6 PagesThe Sarbanes-Oxley Act, frequently known as the SOX. The act was passed on in 2002 as a federal United States law. The law was drafted in response to the numerous numbers of financial scandals performed by high profile corporations such as Johnson Johnson. The action has created a new company standard of responsibility in order to protect the valued stakeholders, as well as the public, from the deceitful practices of various organizatio ns. The Sarbanes-Oxley Act Read MoreThe Importance Of Sarbanes Oxley Act1713 Words   |  7 PagesMEMO To: Professor of ACG 1001 Writing Project From: Calvin Robinson CC: Date: June 13, 2016 Re: The Importance of Sarbanes-Oxley Act After several scandals that involved such major corporations as WorldCom, Enron and Arthur Anderson. President Bush signed the Sarbanes-Oxley Act of 2002 on July 30, 2002 which created after Senator Paul Sarbanes and Representative Michael Oxley. The act was created to regulate financial practices and corporate governance. It consists of 11 different sections or titlesRead MoreLjb Company Case1592 Words   |  7 PagesCOMPANY Abstract A paper presented on the case study 2 review of LJB Company. The paper will address growing issues of Sarbanes-Oxley compliance, and business ethics in regards to Corporate Social Responsibility (CSR) and adherence to current regulatory federal mandates. Paper presents tools for consideration for tomorrow’s leaders and gives a general overview of internal control strategies corporations take to limit legal responsibility in ethical/moral matters that include; matters ofRead MoreSarbanes Oxley Act and the PCAOB Essay1661 Words   |  7 PagesThe Sarbanes-Oxley Act Overview: The development of the Sarbanes-Oxley Act (SOX) was a result of public company scandals. The Enron and Worldcom scandals, for example, helped investor confidence in entities traded on the public markets weaken during 2001 and 2002. Congress was quick to respond to the political crisis and enacted the Sarbanes-Oxley Act of 2002, which was signed into law by President Bush on July 30 (Edward Jones, 1), to restore investor confidence. In reference to SOX, penaltiesRead MoreSarbanes Oxley1476 Words   |  6 Pagesfirms. Sarbanes Oxley has made many changes to many companies. The major financial scandals have impacted many investors and required more regulations to avert this problems. Sarbanes Oxley has tried to increase ethics in the upper management in many public companies. The upper management has tried to improve on social responsibility and increase the public view. There are many critics to Sarbanes Oxley and many different suggestions on improvements. History of Sarbanes-Oxley Act ScandalsRead MoreDo Governmental CSR Policies Assist Consumers or Organizations898 Words   |  4 Pages According to Masahudu (2004) â€Å"several governmental CSR policies, such as the National Environmental Protection Act, Clean Air Act, Safe Drinking Water Act, Toxic Substances Control Act and the Clean Water Act assist in protecting consumers and organizations†. (p. 1). An example of a policy which assists consumers and organizations is the Clean Water Act. The Clean Water Act provides a variety of regulatory and non-regulatory tools to sharply reduce direct pollutant discharges into waterwaysRead MoreThe Sarbanes Oxley Act Of 2002 Essay1605 Words   |  7 Pageswell-known acts have been signed into laws by the presidents at the time to protect investors and consumers alike. A brief overview of the Sarbanes-Oxley Act of 2002, a discussion of some of the provisions therein, opinions of others regarding the act and also my personal and professional opinion will be discussed below. The same will be examined about the Dodd-Frank Wall Street Reform and Consumer Protection Act. Senators Paul Sarbanes and Michael Oxley were the sponsors of the Sarbanes-Oxley Act of 2002Read MoreHow to Reform Corporate Ethics in American Business Today2798 Words   |  12 PagesPortfolio Project MGT-320 Memorandum OUTLINE 1.0 Purpose 2.0 Introduction 3.0 Overview 4.0 Task 5.0 Corporate Governance Issues 5.1 Board of Directors 5.2 Shareholders 5.2.1 Implementation of Independent Auditors from Management 5.2.2 Setting up Effective Accounting Rules 5.3 Modern CEOs 6.0 The Role of Corporate Ethics 7.0 Recommended Policies to be Implemented 7.1 Sarbanes-Oxley Act 7.2 The California State Teachers’ Retirement System (CalSTRS) 8.0 TheRead MoreThe Sarbanes Oxley Act Of 20021274 Words   |  6 Pagesare the Sarbanes-Oxley Act of 2002 and the recently approved by Congress act, the Dodd-Frank Wall Street reform and Consumer Protection of 2010. While these acts have been implemented with the economy and the consumer in mind, there have been a lot of controversy on whether these acts have in fact benefitted the economy or not. We will analyze and explain the two before mentioned acts and will provide an overview of the point of view of supporters and the opposition. The Sarbanes-Oxley Act of 2002